TKO cashflow breakeven copper price of $2.62 USD per pound: TKO cashflow breakeven copper price of $2.62 USD per pound:
TKO 2019 EBITDA was $51.037 Cdn. millions. Total interest expense in 2019 was $34.593 Cdn. millions. TKO produced 125.9 million pounds of copper 2019. The average price of LME copper price was $2.72 USD per pound for 2019. The cashflow breakeven copper price based on the above data would be $2.62 USD per pound. Now you know why the company has to buy put to protect minimum $2.6 per pound of copper price. It is life or death for the company.
TKO earning breakeven copper price of $3.19 USD per pound:
TKO 2019 adjusted net loss was $68.61 millions Cdn or $58.78 millions USD. TKO produced 125.9 million pounds of copper 2019. The average price of LME copper price was $2.72 USD per pound for 2019. The earning breakeven copper price based on the above data would be $3.19 USD per pound
TKO C1 cash costs (total operating costs) has been trending up:
2017: C1 cash costs $1.43 per pound
2018: C1 cash costs $1.93 per pound
2019: C1 cash costs $2.06 per pound:
C1 cash costs $2.21 for Q1 2019, $2.01 for Q2 2019, $2.05 for Q3 2019, and $2.01 for Q4 2019
Besides lower copper price, significant rising in C1 cash costs was the other main reason for poor financial performance and thus TKO share price.